Maintenance Income Test (MIT) reconciliation for ABSTUDY, Assistance for Isolated Children Scheme (AIC) and Youth Allowance (YA) 108-17031700

The MIT applies to some dependent customers who receive:

• Youth Allowance (YA)
• ABSTUDY Living Allowance

From 1 July 2017 until 1 January 2019 the MIT also applied to:

• ABSTUDY Living Allowance customers aged under 16 years
• ABSTUDY School Fees Allowance Group 2, and
• Assistance for Isolated Children (AIC) Additional Boarding Allowance

For more information, see Maintenance Income Test (MIT) for ABSTUDY and Youth Allowance (YA).

The Maintenance Income Test reconciliation, (known as MIT reconciliation) is a process used to determine:

• whether the customer’s payment has been correctly calculated for a previous financial year
• when the customer or their parent/guardian is entitled to maintenance income and subject to the MIT

During a financial year, annual maintenance income is estimated based on a child support assessment or voluntary maintenance income received for the customer.

MIT reconciliation only occurs for customers receiving a MIT affected payment, using actual maintenance income received for a previous financial year.

Note: MIT reconciliation will occur on the third Saturday in July where a customer's payment is in a cancelled state, or they are independent on that day.

Customers who are exempt from the Maintenance Income Test (MIT) for the entire financial year are exempt from MIT reconciliation.

Viewing maintenance income reconciliation results

MIT reconciliation results display via customer summary under the MIT Reconciliation Summary (MITR) table in Process Direct, for all payment types.

Maintenance income re-reconciliation

Once MIT reconciliation is complete, a re-reconciliation may automatically occur due to the following changes:

• a retrospective change in a private collect child support assessment for a previous financial year
• a retrospective change in a sibling circumstance that affects the customer's annualised Maintenance Income Free Area (MIFA)

Note: a reconciliation or re-reconciliation may automatically initiate when a Service Officer undertakes an activity that results in a backdated re-assessment.

Maintenance income reconciliation results

MIT reconciliation and re-reconciliation can result in no adjustment, a negative adjustment or a positive adjustment.

Following reconciliation or re-reconciliation, if a negative adjustment has occurred, the system creates an undetermined debt activity on the Activity List (AL) screen for investigation. The Process page has more information.

If an arrears adjustment has occurred, the system issues an immediate arrears payment and an arrears letter to the customer (YA or ABY), third party (ABY) or applicant (AIC).

There are restrictions about disclosure and confidentiality of customer and parents or guardians information for YA and ABSTUDY customers. Person Permitted to Enquire (PPE) and implied authority provisions apply.